Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 22, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001376321 | |
Entity Registrant Name | ZW Data Action Technologies Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-34647 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 20-4672080 | |
Entity Address, Address Line One | Room 1811, Xinghuo Keji Plaza, No. 2 Fufeng Road, Fengtai District | |
Entity Address, City or Town | Beijing | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 100070 | |
City Area Code | 86 | |
Local Phone Number | 10-6084-6616 | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Trading Symbol | CNET | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,204,506 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | ||
Current assets | ||||
Cash and cash equivalents | $ 1,592 | $ 4,391 | ||
Accounts receivable, net of allowance for credit loss of $4,070 and $3,760, respectively | 1,567 | 1,745 | ||
Prepayment and deposit to suppliers | 4,390 | 4,567 | ||
Other current assets, net | 3,327 | 1,610 | ||
Total current assets | 10,876 | 12,313 | ||
Long-term investments | 1,604 | 1,596 | ||
Operating lease right-of-use assets | 1,680 | 1,761 | ||
Property and equipment, net | 225 | 249 | ||
Intangible assets, net | 2,964 | 3,264 | ||
Long-term deposits and prepayments | 69 | 69 | ||
Deferred tax assets, net | 413 | 406 | ||
Total Assets | 17,831 | 19,658 | ||
Current liabilities: | ||||
Accounts payable | [1] | 218 | 205 | |
Advances from customers * | [1] | 720 | 739 | |
Accrued payroll and other accruals | [1] | 266 | 438 | |
Taxes payable | [1] | 3,280 | 3,248 | |
Operating lease liabilities | [1] | 310 | 347 | |
Lease payment liabilities related to short-term leases * | [1] | 103 | 101 | |
Other current liabilities | [1] | 341 | 437 | |
Warrant liabilities | 84 | 185 | ||
Total current liabilities | 5,322 | 5,700 | ||
Long-term liabilities: | ||||
Operating lease liabilities-Non current | 1,500 | 1,535 | ||
Total Liabilities | 6,949 | 7,361 | ||
Commitments and contingencies | ||||
Equity: | ||||
Common stock (US$0.001 par value; authorized 20,000,000 shares; issued and outstanding 7,174,506 shares at March 31, 2023 and December 31, 2022) | 7 | 7 | [2] | |
Additional paid-in capital | 62,017 | 62,017 | [2] | |
Statutory reserves | 2,598 | 2,598 | ||
Accumulated deficit | (54,859) | (53,525) | ||
Accumulated other comprehensive income | 1,119 | 1,200 | ||
Total stockholders’ equity | 10,882 | 12,297 | ||
Total Liabilities and Equity | 17,831 | 19,658 | ||
Related Party [Member] | ||||
Long-term liabilities: | ||||
Long-term borrowing from a related party | $ 127 | $ 126 | ||
[1]Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 2).[2]Retrospectively restated for effect of the 1-for-5 reverse stock split effective on January 18, 2023, see Note 4(g). |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, allowance for doubtful account | $ 4,070 | $ 3,760 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 7,174,506 | 7,174,506 |
Common stock, shares outstanding (in shares) | 7,174,506 | 7,174,506 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Revenues | $ 6,316 | $ 7,652 | |
Cost of revenues | 6,630 | 7,518 | |
Gross (loss)/profit | (314) | 134 | |
Operating expenses | |||
Sales and marketing expenses | 48 | 69 | |
General and administrative expenses | 932 | 1,548 | |
Research and development expenses | 18 | 68 | |
Total operating expenses | 998 | 1,685 | |
Loss from operations | (1,312) | (1,551) | |
Other income/(expenses) | |||
Interest income | 72 | 46 | |
Other expenses, net | (5) | (9) | |
Change in fair value of warrant liabilities | 101 | 795 | |
Total other income | 168 | 832 | |
Income tax benefit | 1 | 2 | |
Net income (loss) | (1,143) | (717) | |
Net loss | (1,143) | (717) | |
Foreign currency translation loss | (81) | (22) | |
Comprehensive loss | $ (1,224) | $ (739) | |
Loss per common share | |||
Basic and diluted** (in dollars per share) | [1] | $ (0.16) | $ (0.10) |
Weighted average number of common shares outstanding: | |||
Basic and diluted** (in shares) | [1] | 7,174,506 | 7,079,962 |
Unrelated Parties [Member] | |||
Other income/(expenses) | |||
Loss before income tax benefit | $ (1,144) | $ (719) | |
Related Parties [Member] | |||
Other income/(expenses) | |||
Net income (loss) | (1,143) | (717) | |
Net loss | $ (1,143) | $ (717) | |
[1]Retrospectively restated for effect of the 1-for-5 reverse stock split effective on January 18, 2023, see Note 4(g). |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (1,143) | $ (717) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 322 | 554 |
Amortization of operating lease right-of-use assets | 106 | 60 |
Share-based compensation expenses | 35 | 56 |
Provision for allowance for credit losses | 301 | 0 |
Deferred taxes | (1) | (2) |
Disposal of fixed assets | 3 | 0 |
Change in fair value of warrant liabilities | (101) | (795) |
Other non-operating income | (72) | (45) |
Changes in operating assets and liabilities | ||
Accounts receivable | (56) | (159) |
Prepayment and deposit to suppliers | 171 | 914 |
Other current assets | (1) | 13 |
Accounts payable | 10 | (373) |
Advances from customers | (27) | (203) |
Accrued payroll and other accruals | (174) | (66) |
Other current liabilities | (184) | (36) |
Taxes payable | (8) | 7 |
Lease payment liability related to short-term leases | 0 | (42) |
Operating lease liabilities | (97) | (56) |
Net cash used in operating activities | (916) | (890) |
Cash flows from investing activities | ||
Repayment of short-term loans from ownership investee entities | 0 | 13 |
Short-term loan to unrelated parties | (2,000) | (2,500) |
Repayment of short-term loans and interest income from unrelated parties | 123 | 1,029 |
Net cash used in investing activities | (1,877) | (1,458) |
Cash flows from financing activities | ||
Net cash provided by/(used in) financing activities | 0 | 0 |
Effect of exchange rate fluctuation on cash and cash equivalents | (6) | (1) |
Net decrease in cash and cash equivalents | (2,799) | (2,349) |
Cash and cash equivalents at beginning of the period | 4,391 | 7,173 |
Cash and cash equivalents at end of the period | 1,592 | 4,824 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 0 | 0 |
Interest expense paid | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Share-Based Payment Arrangement, Employee [Member] Common Stock [Member] | Share-Based Payment Arrangement, Employee [Member] Additional Paid-in Capital [Member] | Share-Based Payment Arrangement, Employee [Member] Statutory Reserves [Member] | Share-Based Payment Arrangement, Employee [Member] Retained Earnings [Member] | Share-Based Payment Arrangement, Employee [Member] AOCI Attributable to Parent [Member] | Share-Based Payment Arrangement, Employee [Member] Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Statutory Reserves [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Noncontrolling Interest [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total | |||
Balance (in shares) at Dec. 31, 2021 | 7,075,506 | |||||||||||||||||||||
Balance at Dec. 31, 2021 | $ 7 | $ 61,813 | $ 2,598 | $ (43,734) | $ 1,082 | $ 21,766 | ||||||||||||||||
Net loss | 0 | 0 | 0 | (717) | 0 | (717) | $ (717) | |||||||||||||||
Foreign currency translation adjustment | $ 0 | 0 | 0 | 0 | (22) | (22) | (22) | |||||||||||||||
Balance (in shares) at Mar. 31, 2022 | 7,094,506 | |||||||||||||||||||||
Balance at Mar. 31, 2022 | $ 7 | 61,829 | 2,598 | (44,451) | 1,060 | 21,043 | ||||||||||||||||
Share-based compensation in exchange for services from employees and directors (in shares) | 19,000 | |||||||||||||||||||||
Share-based compensation in exchange for services from employees and directors | $ 0 | $ 16 | $ 0 | $ 0 | $ 0 | $ 16 | ||||||||||||||||
Balance (in shares) at Dec. 31, 2022 | [1] | 7,174,506 | ||||||||||||||||||||
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2022 | $ 0 | $ 0 | $ 0 | $ (191) | $ 0 | $ (191) | ||||||||||||||||
Balance at Dec. 31, 2022 | $ 7 | [1] | 62,017 | [1] | 2,598 | (53,525) | 1,200 | 12,297 | ||||||||||||||
Net loss | 0 | 0 | 0 | (1,143) | 0 | (1,143) | (1,143) | |||||||||||||||
Foreign currency translation adjustment | $ 0 | 0 | 0 | 0 | (81) | (81) | $ (81) | |||||||||||||||
Balance (in shares) at Mar. 31, 2023 | 7,174,506 | |||||||||||||||||||||
Balance at Mar. 31, 2023 | $ 7 | $ 62,017 | $ 2,598 | $ (54,859) | $ 1,119 | $ 10,882 | ||||||||||||||||
[1]Retrospectively restated for effect of the 1-for-5 reverse stock split effective on January 18, 2023, see Note 4(g). |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Operations | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Organization and nature of operations ZW Data Action Technologies Inc. (the “Company”) was incorporated in the State of Texas in April 2006 October 2006. June 26, 2009, O2O |
Note 2 - Variable Interest Enti
Note 2 - Variable Interest Entities | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Variable Interest Entities Disclosure [Text Block] | 2. Variable interest entities The Company is not no March 31, 2023 December 31, 2022, March 31, 2023 December 31, US$( 000) US$( 000) (Unaudited) Assets Current assets: Cash and cash equivalents $ 340 $ 578 Accounts receivable, net 1,567 1,745 Prepayment and deposit to suppliers 1,931 2,020 Other current assets 3 2 Total current assets 3,841 4,345 Long-term investments 167 165 Operating lease right-of-use assets 98 145 Property and equipment, net 104 113 Deferred tax assets, net 413 406 Total Assets $ 4,623 $ 5,174 Liabilities Current liabilities: Accounts payable $ 218 $ 205 Advances from customers 667 515 Accrued payroll and other accruals 39 63 Taxes payable 2,629 2,602 Operating lease liabilities 99 146 Lease payment liabilities related to short-term leases 103 101 Other current liabilities 204 320 Total current liabilities 3,959 3,952 Total Liabilities $ 3,959 $ 3,952 Liabilities recognized as a result of consolidating these VIEs do not Summarized below is the information related to the financial performance of the VIEs reported in the Company’s condensed consolidated statements of operations and comprehensive loss for the three March 31, 2023 2022, Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Revenues $ 6,148 $ 7,198 Cost of revenues (6,327 ) (7,518 ) Total operating expenses (370 ) (259 ) Net loss before allocation to noncontrolling interests (550 ) (585 ) |
Note 3 - Liquidity and Capital
Note 3 - Liquidity and Capital Resources | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Substantial Doubt about Going Concern [Text Block] | 3. Liquidity and Capital Resources For the three March 31, 2023, US$1.31 US$0.92 March 31, 2023, US$1.59 US$5.55 The Company experienced temporary decreases in revenues, incurred a gross loss, and did not three March 31, 2023. 19 November 2022 February 2023, first 2023. 19 19 no May 5, 2023, three 19 first 2023. 19 12 In order to improve operation performance, from early 2022, 19 2022 not not third In addition, to further improve its liquidity, the Company plans to negotiate with its major suppliers for more favorable payment terms, reduce its operating costs through optimizing the personnel structure among different offices, and reduce its office leasing spaces, if needed. The Company also intends to obtain revolving credit facilities to supplement its short-term working capital, as needed, from the commercial banks in the PRC. The Company has not Based on the above discussion, the Company believes that its current cash and cash equivalents, its anticipated new cash flows from operations and from investing and financing activities, and other liquidity improving measures will ensure the Company has sufficient cash to meet its obligations as they become due with the next 12 |
Note 4 - Summary of Significant
Note 4 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 4. Summary of significant accounting policies a) Basis of presentation The unaudited condensed consolidated interim financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited condensed consolidated interim financial information as of March 31, 2023 three March 31, 2023 2022 10 December 31, 2022, “2022 10 April 17, 2023. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s condensed consolidated financial position as of March 31, 2023, three March 31, 2023 2022, three March 31, 2023 2022, not b) Principles of consolidation The unaudited condensed consolidated interim financial statements include the accounts of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation. c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. d) Foreign currency translation The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the condensed consolidated financial statements are as follows: March 31, 2023 December 31, 2022 Balance sheet items, except for equity accounts 6.8717 6.9646 Three Months Ended March 31, 2023 2022 Items in the statements of operations and comprehensive loss 6.8476 6.3504 No e) Current expected credit losses In June 2016, No. 2016 13, 326 January 1, 2023, not January 1, 2023 US$0.19 US$0.04 US$0.15 The allowance for credit losses reflects the Company's current estimate of credit losses expected to be incurred over the life of the related financial assets. The allowance for credit losses is presented as a valuation account that is deducted from the amortized cost basis of financial asset(s) to present the net amount expected to be collected on the financial asset(s). The Company considers various factors in establishing, monitoring, and adjusting its allowance for credit losses, including the aging and aging trends, customer/other parties’ creditworthiness and specific exposures related to particular customers/other parties. The Company also monitors other risk factors and forward-looking information, such as country specific risks and economic factors that may The following tables summarized the movements of the Company’s credit losses for the three March 31, 2023 2022, Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Credit loss for accounts receivable: Balance as of beginning of the period 3,760 2,236 Cumulative-effect adjustment upon adoption of ASU No. 2016-13, Financial Instruments-Credit losses (Topic 326) 36 - Provision for credit loss during the period 223 - Written off during the period - - Exchange translation adjustments 51 9 Balance as of end of the period 4,070 2,245 Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Credit loss for other current assets: Balance as of beginning of the period 617 - Cumulative-effect adjustment upon adoption of ASU No. 2016-13, Financial Instruments-Credit losses (Topic 326) 155 - Provision for credit loss during the period 78 - Written off during the period - - Exchange translation adjustments - - Balance as of end of the period 850 - f) Fair value measurement Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2023 December 31, 2022 Fair value measurement at reporting date using As of Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) US$( 000) US$( 000) US$( 000) US$( 000) (Unaudited) Warrant liabilities (Note 14) 84 - - 84 Fair value measurement at reporting date using As of December 31, 2022 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) US$( 000) US$( 000) US$( 000) US$( 000) Warrant liabilities (Note 14) 185 - - 185 g) Reverse stock split The Board of Directors of the Company approved a reverse stock split of the Company’s issued and outstanding shares of common stock, par value $0.001 per share (the “Common Stock”) at a ratio of 1 January 18, 2023 ( no When the Reverse Stock Split became effective, each five one No As a result of the Reverse Stock Split, 35,827,677 shares of Common Stock that were issued and outstanding at January 18, 2023 Except where otherwise specified, all number of shares, number of warrants, share prices, exercise prices and per share data in the condensed consolidated financial statements and notes to the condensed consolidated financial statements have been retroactively restated as if the Reverse Stock Split occurred at the beginning of the periods presented. h) Revenue recognition The following tables present the Company’s revenues disaggregated by products and services and timing of revenue recognition: Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Internet advertising and related services --distribution of the right to use search engine marketing service 6,161 6,594 --online advertising placements 130 1,058 Blockchain-based SaaS services 25 - Total revenues 6,316 7,652 Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Revenue recognized over time 6,316 7,652 Revenue recognized at a point in time - - Total revenues 6,316 7,652 Contract balances The table below summarized the movement of the Company’s contract liabilities (advance from customers) for the three March 31, 2023: Contract liabilities US$( 000) Balance as of January 1, 2023 739 Exchange translation adjustment 8 Revenue recognized from beginning contract liability balance (550 ) Advances received from customers related to unsatisfied performance obligations 523 Balance as of March 31, 2023 (Unaudited) 720 Advance from customers related to unsatisfied performance obligations are generally refundable. Refund of advance from customers were insignificant for both the three March 31, 2023 2022. For the three March 31, 2023 2022, no i) Research and development expenses The Company accounts for expenses for the enhancement, maintenance and technical support to the Company’s Internet platforms and intellectual properties that are used in its daily operations in research and development expenses. Research and development costs are charged to expense when incurred. Expenses for research and development for the three March 31, 2023 2022 US$0.02 US$0.07 j) Lease As of March 31, 2023, US$1.68 US$1.81 Maturity of operating lease liabilities Operating leases US$( 000) (Unaudited) Nine months ending December 31, 2023 329 Year ending December 31, -2024 317 -2025 333 -2026 349 -2027 367 -2028 385 -thereafter 65 Total undiscounted lease payments 2,145 Less: imputed interest (335 ) Total operating lease liabilities as of March 31, 2023 1,810 Including: Operating lease liabilities 310 Operating lease liabilities-Non current 1,500 1,810 Operating lease expenses: Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Long-term operating lease contracts 133 90 Short-term operating lease contracts 6 15 Total 139 105 Supplemental information related to operating leases : Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Operating cash flows used for operating leases (US$’000) 122 86 Right-of-use assets obtained in exchange for new lease liabilities (US$’000) - - Weighted-average remaining lease term (years) 5.62 6.90 Weighted-average discount rate 6 % 6 % |
Note 5 - Accounts Receivable, N
Note 5 - Accounts Receivable, Net | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Accounts Receivable Disclosure [Text Block] | 5. Accounts receivable, net March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Accounts receivable 5,637 5,505 Allowance for credit loss (4,070 ) (3,760 ) Accounts receivable, net 1,567 1,745 All of the accounts receivable are non-interest bearing. The Company maintains an estimated allowance for credit losses to reduce its accounts receivable to the amount that it believes will be collected. The Company evaluates its accounts receivable on a collective (pool) basis and determines the allowance for credit loss based on aging data, historical collection experience, customer specific facts, current economic conditions and reasonable and supportable forecasts of future economic conditions. For the three March 31, 2023, US$0.22 |
Note 6 - Prepayment and Deposit
Note 6 - Prepayment and Deposit to Suppliers | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Prepayments and Deposits to Suppliers Disclosure [Text Block] | 6. Prepayment and deposit to suppliers March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Deposits to advertising resources providers 866 1,077 Prepayments to advertising resources providers 3,045 3,036 Other deposits and prepayments 479 454 4,390 4,567 |
Note 7 - Other Current Assets,
Note 7 - Other Current Assets, Net | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Other Current Assets [Text Block] | 7. Other current assets, net March 31, 2023 December 31, 2022 US$( 000) US$( 000) Short-term loans to unrelated parties 4,097 2,197 Short-term loans interest receivables 71 22 Staff advances for business operations 9 8 Total other current assets 4,177 2,227 Allowance for credit loss (850 ) (617 ) Other current assets, net 3,327 1,610 As of March 31, 2023, two On January 5, 2022, US$2.5 May 5, 2022. April 2022, US$1.02 US0.06 January 5, 2022 April 30, 2022, US$2.5 US$1.48 April 30, 2023 October 2022 February 2023, U S$0.05 May 1, 2022 December 31, 2022. April 30, 2023, October 31, 2023. May 2023, US$0.02 January 1, 2023 April 30, 2023. On January 11, 2023, US$2.0 July 17, 2023. The Company evaluates its short-term loans provided to unrelated parties for expected credit losses on a regular basis, and maintains an estimated allowance for credit losses to reduce its short-term loans to the amount that it believes will be collected. The Company evaluates its short-term loans on an individual basis and determines the allowance for credit loss based on creditworthiness of the borrowers, aging information, past transaction history with the borrowers and their current condition, as well as the current economic conditions and reasonable and supportable forecasts of future economic conditions. For the three March 31, 2023, US$0.08 As of March 31,2023, US$0.62 March 2021, US$1.65 one March 2022. March 31, 2022, US$1.03 US$0.62 June 2022, US$0.62 March 2023, not not |
Note 8 - Long-term Investments
Note 8 - Long-term Investments | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 8. Long-term investments Amount US$( 000) Balance as of January 1, 2023 1,596 Exchange translation adjustment 8 Balance as of March 31, 2023 (Unaudited) 1,604 As of March 31, 2023, 15.38%, 10%, 19% The Company measures these investments which do not |
Note 9 - Property and Equipment
Note 9 - Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 9. Property and equipment, net March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Vehicles 797 855 Office equipment 876 865 Electronic devices 584 575 Leasehold improvement 187 185 Property and equipment, cost 2,444 2,480 Less: accumulated depreciation (2,219 ) (2,231 ) Property and equipment, net 225 249 Depreciation expenses were approximately US$0.02 US$0.03 three March 31, 2023 2022, |
Note 10 - Intangible Assets, Ne
Note 10 - Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 10. Intangible assets, net As of March 31, 2023 (Unaudited) Items Gross Carrying Value Accumulated Amortization Impairment Net Carrying Value US$( 000) US$( 000) US$( 000) US$( 000) Intangible assets subject to amortization: -- 10 Cloud compute software technology 1,351 (937 ) (414 ) - Licensed products use right 1,200 (405 ) - 795 -- 5 Internet Ad tracking system 1,160 (463 ) - 697 Live streaming technology 1,500 (625 ) (875 ) - -- 3 Blockchain integrated framework 4,038 (1,556 ) (1,010 ) 1,472 Bo!News application 349 (116 ) (233 ) - Other computer software 114 (114 ) - - Total $ 9,712 $ (4,216 ) $ (2,532 ) $ 2,964 As of December 31, 2022 Items Gross Carrying Value Accumulated Amortization Impairment Net Carrying Value US$( 000) US$( 000) US$( 000) US$( 000) Intangible assets subject to amortization: -- 10 Cloud compute software technology 1,333 (924 ) (409 ) - Licensed products use right 1,201 (374 ) - 827 -- 5 Internet Ad tracking system 1,160 (405 ) - 755 Live streaming technology 1,500 (625 ) (875 ) - -- 3 Blockchain integrated framework 4,038 (1,346 ) (1,010 ) 1,682 Bo!News application 345 (115 ) (230 ) - Other computer software 113 (113 ) - - Total $ 9,690 $ (3,902 ) $ (2,524 ) $ 3,264 Amortization expenses for the three March 31, 2023 2022 US$0.30 US$0.53 Based on the adjusted carrying value of the finite-lived intangible assets after the deduction of the impairment losses, which has a weighted average remaining useful life of 3.34 years as of March 31, 2023, no US$0.90 December 31, 2023, US$1.19 December 31, 2024, US$0.35 December 31, 2025, US$0.18 December 31, 2026, US$0.12 December 31, 2027 2028. |
Note 11 - Accrued Payroll and O
Note 11 - Accrued Payroll and Other Accruals | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 11. Accrued payroll and other accruals March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Accrued payroll and staff welfare 83 101 Accrued operating expenses 183 337 266 438 |
Note 12 - Taxation
Note 12 - Taxation | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 12. Taxation As of March 31, 2023 December 31, 2022, March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Turnover tax and surcharge payable 1,297 1,288 Enterprise income tax payable 1,983 1,960 Total taxes payable 3,280 3,248 For the three March 31, 2023 2022, Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Current - - Deferred 1 2 Income tax benefit 1 2 The Company’s deferred tax assets as of March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Tax effect of net operating losses carried forward 11,812 11,537 Operating lease cost 33 30 Impairment on long-term investments 146 144 Impairment on intangible assets 369 368 Bad debts provision 1,133 1,018 Valuation allowance (13,080 ) (12,691 ) Deferred tax assets, net 413 406 The U.S. holding company has incurred aggregate net operating losses (NOLs) of approximately US$32.0 US$31.8 March 31, 2023 December 31, 2022, December 31, 2017 2037. December 31, 2017 no December 31, 2017. not The NOLs carried forward incurred by the Company’s PRC subsidiaries and VIEs were approximately US$16.0 US$15.4 March 31, 2023 December 31, 2022, 2028. The Company recorded approximately US$13.0 US$12.7 March 31, 2023 December 31, 2022, not not For the three March 31, 2023 2022, US$0.30 US$0.32 |
Note 13 - Long-term Borrowing F
Note 13 - Long-term Borrowing From a Related Party | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Long-Term Borrowing from Director Disclosure [Text Block] | 13. Long-term borrowing from a related party Long-term borrowing from a related party is a non-interest bearing loan from a related party of the Company relating to the original paid-in capital contribution in the Company’s wholly-owned subsidiary, Rise King Century Technology Development (Beijing) Co., Ltd. (“Rise King WFOE”), which is not one |
Note 14 - Warrant Liabilities
Note 14 - Warrant Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Warrants Disclosure [Text Block] | 14. Warrant liabilities The Company issued common stock purchase warrants to certain institutional investors and the Company’s placement agent in the registered direct offerings consummated in February 2021 ( “2021 December 2020 ( “2020 2021 “2021 “2021 2020 “2020 “2020 2021 2020 Warrants issued in the 2021 2021 Investor Warrants 2021 Placement Agent Warrants March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Stock price $ 1.70 $ 0.46 # $ 1.70 $ 0.46 # Years to maturity 1.38 1.63 1.38 1.63 Risk-free interest rate 4.44 % 4.625 % 4.44 % 4.625 % Dividend yield - - - - Expected volatility 113 % 99.74 % 113 % 99.74 % Exercise Price $ 17.95 $ 3.59 # $ 22.4375 $ 4.4875 # Fair value of the warrant $ 0.0937 $ 0.0329 $ 0.0727 $ 0.0256 Warrant liabilities (US$’000) $ 49 $ 86 $ 5 $ 9 2021 Investor Warrants 2021 Placement Agent Warrants March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Stock price# $ 0.73 $ 1.00 $ 0.73 $ 1.00 Years to maturity 2.38 2.63 2.38 2.63 Risk-free interest rate 2.35 % 0.87 % 2.35 % 0.87 % Dividend yield - - - - Expected volatility 121 % 115 % 121 % 115 % Exercise Price# $ 3.59 $ 3.59 $ 4.4875 $ 4.4875 Fair value of the warrant $ 0.24 $ 0.37 $ 0.23 $ 0.36 Warrant liabilities (US$’000) $ 626 $ 964 $ 84 $ 132 Warrants issued in the 2020 2020 Investor Warrants 2020 Placement Agent Warrants March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Stock price $ 1.70 $ 0.46 # $ 1.70 $ 0.46 # Years to maturity 0.70 0.95 0.70 0.95 Risk-free interest rate 4.80 % 4.716 % 4.80 % 4.716 % Dividend yield - - - - Expected volatility 125 % 115.61 % 125 % 115.61 % Exercise Price $ 10.15 $ 2.03 # $ 10.15 $ 2.03 # Fair value of the warrant $ 0.0731 $ 0.0439 $ 0.0760 $ 0.0456 Warrant liabilities (US$’000) $ 25 $ 76 $ 5 $ 14 2020 Investor Warrants 2020 Placement Agent Warrants March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Stock price# $ 0.73 $ 1.00 $ 0.73 $ 1.00 Years to maturity 1.70 1.95 1.70 1.95 Risk-free interest rate 2.23 % 0.72 % 2.23 % 0.72 % Dividend yield - - - - Expected volatility 127 % 128 % 127 % 128 % Exercise Price# $ 2.03 $ 2.03 $ 2.03 $ 2.03 Fair value of the warrant $ 0.26 $ 0.46 $ 0.28 $ 0.49 Warrant liabilities (US$’000) $ 449 $ 795 $ 85 $ 148 # To reflect the actual inputs used for the determination of fair value of the Warrants, the stock prices and exercise prices presented were not retrospectively restated for effect of the 1 reverse stock split effective on January 18, 2023, see Note 4 Changes in fair value of warrant liabilities Three Months Ended March 31, 2023 ( As of As of Change in Fair Value (US$ 000) (US$ 000) (US$ 000) Fair value of the Warrants: Warrants issued in the 2021 Financing: --Investor Warrants 49 86 (37 ) --Placement Agent Warrants 5 9 (4 ) Warrants issued in the 2020 Financing: --Investor Warrants 25 76 (51 ) --Placement Agent Warrants 5 14 (9 ) Warrant liabilities 84 185 (101 ) Three Months Ended March 31, 2022 ( As of March 31, 2022 As of December 31, 2021 Change in Fair Value (Gain)/Loss (US$ 000) (US$ 000) (US$ 000) Fair value of the Warrants: Warrants issued in the 2021 Financing: --Investor Warrants 626 964 (338 ) --Placement Agent Warrants 84 132 (48 ) Warrants issued in the 2020 Financing: --Investor Warrants 449 795 (346 ) --Placement Agent Warrants 85 148 (63 ) Warrant liabilities 1,244 2,039 (795 ) Warrants issued and outstanding as of March 31, 2023 three Warrant Outstanding Warrant Exercisable Number of Weighted Weighted Number of Weighted Weighted Balance, January 1, 2023 1,000,343 1.36 $ 15.11 1,001,343 1.36 $ 15.11 Granted/Vested - - Exercised - - Balance, March 31, 2023 (Unaudited) 1,000,343 1.11 $ 15.11 1,000,343 1.11 $ 15.11 |
Note 15 - Restricted Net Assets
Note 15 - Restricted Net Assets | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Restricted Assets Disclosure [Text Block] | 15. Restricted net assets The Company is a Nevada holding company with operations primarily conducted in China through its PRC subsidiaries, the consolidated VIEs and VIEs’ subsidiaries. The Company’s ability to pay dividends to U.S. investors may The PRC regulations currently permit payment of dividends only out of accumulated profits, as determined in accordance with PRC accounting standards and regulations. The Company’s PRC subsidiaries, the consolidated VIEs and their subsidiaries in China are also required to set aside at least 10% of their respective after-tax profit based on the PRC accounting standards and regulations each year to the statutory surplus reserve, until the balance in the reserve reaches 50% of the registered capital of the respective PRC entities. In accordance with these PRC laws and regulations, the Company’s PRC subsidiaries, the consolidated VIEs and their subsidiaries are restricted in their ability to transfer a portion of their net assets to the Nevada holding company. As of March 31, 2023 December 31, 2022, US$13.68 US$13.31 none may Under the PRC Enterprise Income Tax (“EIT”) Law and related regulations, dividends, interests, rent or royalties payable by a foreign-invested enterprise to its immediate holding company outside China are subject to a 10% withholding tax. A lower withholding tax rate will be applied if there is a tax treaty arrangement between mainland China and the jurisdiction of the foreign holding company. Hong Kong has a tax arrangement with mainland China that provides for a 5% 25% 12 2018 not no not There are no may may may The Company’s PRC subsidiaries generate all of their revenue in Renminbi, Renminbi is not may may not may may may may may To date, none The Company does not not |
Note 16 - Employee Defined Cont
Note 16 - Employee Defined Contribution Plan | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | 16. Employee defined contribution plan Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiaries and VIEs of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The employee benefits were expensed as incurred. The Company has no US$0.04 US$0.07 three March 31, 2023 2022, |
Note 17 - Concentration of Risk
Note 17 - Concentration of Risk | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 17. Concentration of risk Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and loans to unrelated parties. As of Mach 31, 2023, Concentration of customers The following tables summarized the information about the Company’s concentration of customers for the three March 31, 2023 2022, Customer A Customer B Customer C Customer D Customer E Three Months Ended March 31, 2023 Revenues, customer concentration risk * * * * * Three Months Ended March 31, 2022 Revenues, customer concentration risk 13% * * * * As of March 31, 2023 Accounts receivable, customer concentration risk 10% 40% 25% 14% 10% As of December 31, 2022 Accounts receivable, customer concentration risk 16% 33% 24% 16% * * Less than 10%. Concentration of suppliers The following tables summarized the information about the Company’s concentration of suppliers for the three March 31, 2023 2022, Supplier A Supplier B Supplier C Three Months Ended March 31, 2023 Cost of revenues, supplier concentration risk 78% 14% - Three Months Ended March 31, 2022 Cost of revenues, supplier concentration risk * 60% 22% * Less than 10%. - No |
Note 18 - Commitments and Conti
Note 18 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 18. Commitments and contingencies In August 2022, RMB6.73 US$0.98 December 31, 2065. In September 2022, RMB0.09 US$0.01 December 31, 2040. The Company may may not |
Note 19 - Segment Reporting
Note 19 - Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 19. Segment reporting The Company follows ASC Topic 280 Three Months Ended March 31, 2023 ( Internet Ad and related Ecommerce Blockchain Corporate Inter- Total US$(‘000) US$(‘000) US$(‘000) US$(‘000) US$(‘000) US$(‘000) Revenues 6,291 - 25 - - 6,316 Cost of revenues 6,420 - 210 - - 6,630 Total operating expenses 349 4 - 645 (1) - 998 Depreciation and amortization expense included in cost of revenues and total operating expenses 91 - 210 21 - 322 Operating loss (478 ) (4 ) (185 ) (645 ) - (1,312 ) Change in fair value of warrant liabilities - - - 101 - 101 Net loss (482 ) (1 ) (186 ) (474 ) (1,143 ) Total assets-March 31, 2023 10,060 154 1,472 38,372 (32,227 ) 17,831 Total assets-December 31, 2022 10,385 156 1,682 39,136 (31,701 ) 19,658 ( 1 Including approximately US$0.04 Three Months Ended March 31, 2022 ( Internet Ad and related Ecommerce Blockchain Corporate Inter- Total US$(‘000) US$(‘000) US$(‘000) US$(‘000) US$(‘000) US$(‘000) Revenues 7,652 - - - - 7,652 Cost of revenues 7,518 - - - - 7,518 Total operating expenses 288 329 368 700 (1) - 1,685 Depreciation and amortization expense included in cost of revenues and total operating expenses 89 75 368 22 - 554 Operating loss (154 ) (329 ) (368 ) (700 ) - (1,551 ) Change in fair value of warrant liabilities - - - 795 - 795 Net (loss)/income (167 ) (328 ) (368 ) 146 (717 ) ( 1 Including approximately US$0.06 |
Note 20 - Loss Per Share
Note 20 - Loss Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 20. Loss per share Basic and diluted loss per share for each of the periods presented are calculated as follows (All amounts, except number of shares and per share data, are presented in thousands of U.S. dollars): Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Net loss attributable to ZW Data Action Technologies Inc. (numerator for basic and diluted loss per share) $ (1,143 ) $ (717 ) Weighted average number of common shares outstanding -Basic and diluted 7,174,506 7,079,962 Loss per share -Basic and diluted $ (0.16 ) $ (0.10 ) For the three March 31, 2023 2022, not |
Note 21 - Share-based Compensat
Note 21 - Share-based Compensation Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 21. Share-based compensation expenses In June 2022, 12 May 2023. US$1.75 US$0.14 US$0.04 three March 31, 2023. In March 2022, 2020 two December 31, 2022. three March 31, 2022 US$0.02 For the three March 31, 2022, US$0.04 one March 2020. The table below summarized share-based compensation expenses recorded for the three March 31, 2023 2022, Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Sales and marketing expenses - - General and administrative expenses 35 56 Research and development expenses - - Total 35 56 The aggregate unrecognized share-based compensation expenses as of March 31, 2023 US$0.02 December 31, 2023. |
Note 22 - Subsequent Events
Note 22 - Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 22. Subsequent events In April 2023, 2020 one December 31, 2023. US$0.05 December 31,2023. In March 2020, 19” 19 19 may may 19 19 no May 5, 2023, no 19 Except for the above mentioned matters, there is no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | a) Basis of presentation The unaudited condensed consolidated interim financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited condensed consolidated interim financial information as of March 31, 2023 three March 31, 2023 2022 10 December 31, 2022, “2022 10 April 17, 2023. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s condensed consolidated financial position as of March 31, 2023, three March 31, 2023 2022, three March 31, 2023 2022, not |
Consolidation, Policy [Policy Text Block] | b) Principles of consolidation The unaudited condensed consolidated interim financial statements include the accounts of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation. |
Use of Estimates, Policy [Policy Text Block] | c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | d) Foreign currency translation The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the condensed consolidated financial statements are as follows: March 31, 2023 December 31, 2022 Balance sheet items, except for equity accounts 6.8717 6.9646 Three Months Ended March 31, 2023 2022 Items in the statements of operations and comprehensive loss 6.8476 6.3504 No |
Credit Loss, Financial Instrument [Policy Text Block] | e) Current expected credit losses In June 2016, No. 2016 13, 326 January 1, 2023, not January 1, 2023 US$0.19 US$0.04 US$0.15 The allowance for credit losses reflects the Company's current estimate of credit losses expected to be incurred over the life of the related financial assets. The allowance for credit losses is presented as a valuation account that is deducted from the amortized cost basis of financial asset(s) to present the net amount expected to be collected on the financial asset(s). The Company considers various factors in establishing, monitoring, and adjusting its allowance for credit losses, including the aging and aging trends, customer/other parties’ creditworthiness and specific exposures related to particular customers/other parties. The Company also monitors other risk factors and forward-looking information, such as country specific risks and economic factors that may The following tables summarized the movements of the Company’s credit losses for the three March 31, 2023 2022, Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Credit loss for accounts receivable: Balance as of beginning of the period 3,760 2,236 Cumulative-effect adjustment upon adoption of ASU No. 2016-13, Financial Instruments-Credit losses (Topic 326) 36 - Provision for credit loss during the period 223 - Written off during the period - - Exchange translation adjustments 51 9 Balance as of end of the period 4,070 2,245 Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Credit loss for other current assets: Balance as of beginning of the period 617 - Cumulative-effect adjustment upon adoption of ASU No. 2016-13, Financial Instruments-Credit losses (Topic 326) 155 - Provision for credit loss during the period 78 - Written off during the period - - Exchange translation adjustments - - Balance as of end of the period 850 - |
Fair Value Measurement, Policy [Policy Text Block] | f) Fair value measurement Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2023 December 31, 2022 Fair value measurement at reporting date using As of Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) US$( 000) US$( 000) US$( 000) US$( 000) (Unaudited) Warrant liabilities (Note 14) 84 - - 84 Fair value measurement at reporting date using As of December 31, 2022 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) US$( 000) US$( 000) US$( 000) US$( 000) Warrant liabilities (Note 14) 185 - - 185 |
Stockholders' Equity, Policy [Policy Text Block] | g) Reverse stock split The Board of Directors of the Company approved a reverse stock split of the Company’s issued and outstanding shares of common stock, par value $0.001 per share (the “Common Stock”) at a ratio of 1 January 18, 2023 ( no When the Reverse Stock Split became effective, each five one No As a result of the Reverse Stock Split, 35,827,677 shares of Common Stock that were issued and outstanding at January 18, 2023 Except where otherwise specified, all number of shares, number of warrants, share prices, exercise prices and per share data in the condensed consolidated financial statements and notes to the condensed consolidated financial statements have been retroactively restated as if the Reverse Stock Split occurred at the beginning of the periods presented. |
Revenue from Contract with Customer [Policy Text Block] | h) Revenue recognition The following tables present the Company’s revenues disaggregated by products and services and timing of revenue recognition: Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Internet advertising and related services --distribution of the right to use search engine marketing service 6,161 6,594 --online advertising placements 130 1,058 Blockchain-based SaaS services 25 - Total revenues 6,316 7,652 Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Revenue recognized over time 6,316 7,652 Revenue recognized at a point in time - - Total revenues 6,316 7,652 Contract balances The table below summarized the movement of the Company’s contract liabilities (advance from customers) for the three March 31, 2023: Contract liabilities US$( 000) Balance as of January 1, 2023 739 Exchange translation adjustment 8 Revenue recognized from beginning contract liability balance (550 ) Advances received from customers related to unsatisfied performance obligations 523 Balance as of March 31, 2023 (Unaudited) 720 Advance from customers related to unsatisfied performance obligations are generally refundable. Refund of advance from customers were insignificant for both the three March 31, 2023 2022. For the three March 31, 2023 2022, no |
Research and Development Expense, Policy [Policy Text Block] | i) Research and development expenses The Company accounts for expenses for the enhancement, maintenance and technical support to the Company’s Internet platforms and intellectual properties that are used in its daily operations in research and development expenses. Research and development costs are charged to expense when incurred. Expenses for research and development for the three March 31, 2023 2022 US$0.02 US$0.07 |
Lessee, Leases [Policy Text Block] | j) Lease As of March 31, 2023, US$1.68 US$1.81 Maturity of operating lease liabilities Operating leases US$( 000) (Unaudited) Nine months ending December 31, 2023 329 Year ending December 31, -2024 317 -2025 333 -2026 349 -2027 367 -2028 385 -thereafter 65 Total undiscounted lease payments 2,145 Less: imputed interest (335 ) Total operating lease liabilities as of March 31, 2023 1,810 Including: Operating lease liabilities 310 Operating lease liabilities-Non current 1,500 1,810 Operating lease expenses: Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Long-term operating lease contracts 133 90 Short-term operating lease contracts 6 15 Total 139 105 Supplemental information related to operating leases : Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Operating cash flows used for operating leases (US$’000) 122 86 Right-of-use assets obtained in exchange for new lease liabilities (US$’000) - - Weighted-average remaining lease term (years) 5.62 6.90 Weighted-average discount rate 6 % 6 % |
Note 2 - Variable Interest En_2
Note 2 - Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Variable Interest Entities [Table Text Block] | March 31, 2023 December 31, US$( 000) US$( 000) (Unaudited) Assets Current assets: Cash and cash equivalents $ 340 $ 578 Accounts receivable, net 1,567 1,745 Prepayment and deposit to suppliers 1,931 2,020 Other current assets 3 2 Total current assets 3,841 4,345 Long-term investments 167 165 Operating lease right-of-use assets 98 145 Property and equipment, net 104 113 Deferred tax assets, net 413 406 Total Assets $ 4,623 $ 5,174 Liabilities Current liabilities: Accounts payable $ 218 $ 205 Advances from customers 667 515 Accrued payroll and other accruals 39 63 Taxes payable 2,629 2,602 Operating lease liabilities 99 146 Lease payment liabilities related to short-term leases 103 101 Other current liabilities 204 320 Total current liabilities 3,959 3,952 Total Liabilities $ 3,959 $ 3,952 |
Financial Performance of VIEs [Table Text Block] | Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Revenues $ 6,148 $ 7,198 Cost of revenues (6,327 ) (7,518 ) Total operating expenses (370 ) (259 ) Net loss before allocation to noncontrolling interests (550 ) (585 ) |
Note 4 - Summary of Significa_2
Note 4 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Foreign Currency Exchange Rates [Table Text Block] | March 31, 2023 December 31, 2022 Balance sheet items, except for equity accounts 6.8717 6.9646 Three Months Ended March 31, 2023 2022 Items in the statements of operations and comprehensive loss 6.8476 6.3504 |
Financing Receivable, Current, Allowance for Credit Loss [Table Text Block] | Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Credit loss for accounts receivable: Balance as of beginning of the period 3,760 2,236 Cumulative-effect adjustment upon adoption of ASU No. 2016-13, Financial Instruments-Credit losses (Topic 326) 36 - Provision for credit loss during the period 223 - Written off during the period - - Exchange translation adjustments 51 9 Balance as of end of the period 4,070 2,245 Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Credit loss for other current assets: Balance as of beginning of the period 617 - Cumulative-effect adjustment upon adoption of ASU No. 2016-13, Financial Instruments-Credit losses (Topic 326) 155 - Provision for credit loss during the period 78 - Written off during the period - - Exchange translation adjustments - - Balance as of end of the period 850 - |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair value measurement at reporting date using As of Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) US$( 000) US$( 000) US$( 000) US$( 000) (Unaudited) Warrant liabilities (Note 14) 84 - - 84 Fair value measurement at reporting date using As of December 31, 2022 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) US$( 000) US$( 000) US$( 000) US$( 000) Warrant liabilities (Note 14) 185 - - 185 |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Internet advertising and related services --distribution of the right to use search engine marketing service 6,161 6,594 --online advertising placements 130 1,058 Blockchain-based SaaS services 25 - Total revenues 6,316 7,652 Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Revenue recognized over time 6,316 7,652 Revenue recognized at a point in time - - Total revenues 6,316 7,652 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Contract liabilities US$( 000) Balance as of January 1, 2023 739 Exchange translation adjustment 8 Revenue recognized from beginning contract liability balance (550 ) Advances received from customers related to unsatisfied performance obligations 523 Balance as of March 31, 2023 (Unaudited) 720 |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Operating leases US$( 000) (Unaudited) Nine months ending December 31, 2023 329 Year ending December 31, -2024 317 -2025 333 -2026 349 -2027 367 -2028 385 -thereafter 65 Total undiscounted lease payments 2,145 Less: imputed interest (335 ) Total operating lease liabilities as of March 31, 2023 1,810 Including: Operating lease liabilities 310 Operating lease liabilities-Non current 1,500 1,810 |
Lease, Cost [Table Text Block] | Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Long-term operating lease contracts 133 90 Short-term operating lease contracts 6 15 Total 139 105 Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Operating cash flows used for operating leases (US$’000) 122 86 Right-of-use assets obtained in exchange for new lease liabilities (US$’000) - - Weighted-average remaining lease term (years) 5.62 6.90 Weighted-average discount rate 6 % 6 % |
Note 5 - Accounts Receivable,_2
Note 5 - Accounts Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Accounts Receivable [Table Text Block] | March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Accounts receivable 5,637 5,505 Allowance for credit loss (4,070 ) (3,760 ) Accounts receivable, net 1,567 1,745 |
Note 6 - Prepayment and Depos_2
Note 6 - Prepayment and Deposit to Suppliers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Prepayments and Deposit to Suppliers [Table Text Block] | March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Deposits to advertising resources providers 866 1,077 Prepayments to advertising resources providers 3,045 3,036 Other deposits and prepayments 479 454 4,390 4,567 |
Note 7 - Other Current Assets_2
Note 7 - Other Current Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Other Current Assets [Table Text Block] | March 31, 2023 December 31, 2022 US$( 000) US$( 000) Short-term loans to unrelated parties 4,097 2,197 Short-term loans interest receivables 71 22 Staff advances for business operations 9 8 Total other current assets 4,177 2,227 Allowance for credit loss (850 ) (617 ) Other current assets, net 3,327 1,610 |
Note 8 - Long-term Investments
Note 8 - Long-term Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Other Investments Not Readily Marketable [Table Text Block] | Amount US$( 000) Balance as of January 1, 2023 1,596 Exchange translation adjustment 8 Balance as of March 31, 2023 (Unaudited) 1,604 |
Note 9 - Property and Equipme_2
Note 9 - Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Property and Equipment [Table Text Block] | March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Vehicles 797 855 Office equipment 876 865 Electronic devices 584 575 Leasehold improvement 187 185 Property and equipment, cost 2,444 2,480 Less: accumulated depreciation (2,219 ) (2,231 ) Property and equipment, net 225 249 |
Note 10 - Intangible Assets, _2
Note 10 - Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Finite and Indefinite-Lived Intangible Assets [Table Text Block] | As of March 31, 2023 (Unaudited) Items Gross Carrying Value Accumulated Amortization Impairment Net Carrying Value US$( 000) US$( 000) US$( 000) US$( 000) Intangible assets subject to amortization: -- 10 Cloud compute software technology 1,351 (937 ) (414 ) - Licensed products use right 1,200 (405 ) - 795 -- 5 Internet Ad tracking system 1,160 (463 ) - 697 Live streaming technology 1,500 (625 ) (875 ) - -- 3 Blockchain integrated framework 4,038 (1,556 ) (1,010 ) 1,472 Bo!News application 349 (116 ) (233 ) - Other computer software 114 (114 ) - - Total $ 9,712 $ (4,216 ) $ (2,532 ) $ 2,964 As of December 31, 2022 Items Gross Carrying Value Accumulated Amortization Impairment Net Carrying Value US$( 000) US$( 000) US$( 000) US$( 000) Intangible assets subject to amortization: -- 10 Cloud compute software technology 1,333 (924 ) (409 ) - Licensed products use right 1,201 (374 ) - 827 -- 5 Internet Ad tracking system 1,160 (405 ) - 755 Live streaming technology 1,500 (625 ) (875 ) - -- 3 Blockchain integrated framework 4,038 (1,346 ) (1,010 ) 1,682 Bo!News application 345 (115 ) (230 ) - Other computer software 113 (113 ) - - Total $ 9,690 $ (3,902 ) $ (2,524 ) $ 3,264 |
Note 11 - Accrued Payroll and_2
Note 11 - Accrued Payroll and Other Accruals (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Accrued payroll and staff welfare 83 101 Accrued operating expenses 183 337 266 438 |
Note 12 - Taxation (Tables)
Note 12 - Taxation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule Of Taxes Payable [Table Text Block] | March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Turnover tax and surcharge payable 1,297 1,288 Enterprise income tax payable 1,983 1,960 Total taxes payable 3,280 3,248 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Current - - Deferred 1 2 Income tax benefit 1 2 |
Schedule Of Deferred Tax Assets [Table Text Block] | March 31, 2023 December 31, 2022 US$( 000) US$( 000) (Unaudited) Tax effect of net operating losses carried forward 11,812 11,537 Operating lease cost 33 30 Impairment on long-term investments 146 144 Impairment on intangible assets 369 368 Bad debts provision 1,133 1,018 Valuation allowance (13,080 ) (12,691 ) Deferred tax assets, net 413 406 |
Note 14 - Warrant Liabilities (
Note 14 - Warrant Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Warrant Liabilities [Table Text Block] | As of As of Change in Fair Value (US$ 000) (US$ 000) (US$ 000) Fair value of the Warrants: Warrants issued in the 2021 Financing: --Investor Warrants 49 86 (37 ) --Placement Agent Warrants 5 9 (4 ) Warrants issued in the 2020 Financing: --Investor Warrants 25 76 (51 ) --Placement Agent Warrants 5 14 (9 ) Warrant liabilities 84 185 (101 ) As of March 31, 2022 As of December 31, 2021 Change in Fair Value (Gain)/Loss (US$ 000) (US$ 000) (US$ 000) Fair value of the Warrants: Warrants issued in the 2021 Financing: --Investor Warrants 626 964 (338 ) --Placement Agent Warrants 84 132 (48 ) Warrants issued in the 2020 Financing: --Investor Warrants 449 795 (346 ) --Placement Agent Warrants 85 148 (63 ) Warrant liabilities 1,244 2,039 (795 ) |
Schedule of Warrant Activity [Table Text Block] | Warrant Outstanding Warrant Exercisable Number of Weighted Weighted Number of Weighted Weighted Balance, January 1, 2023 1,000,343 1.36 $ 15.11 1,001,343 1.36 $ 15.11 Granted/Vested - - Exercised - - Balance, March 31, 2023 (Unaudited) 1,000,343 1.11 $ 15.11 1,000,343 1.11 $ 15.11 |
Warrant [Member] | |
Notes Tables | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | 2021 Investor Warrants 2021 Placement Agent Warrants March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Stock price $ 1.70 $ 0.46 # $ 1.70 $ 0.46 # Years to maturity 1.38 1.63 1.38 1.63 Risk-free interest rate 4.44 % 4.625 % 4.44 % 4.625 % Dividend yield - - - - Expected volatility 113 % 99.74 % 113 % 99.74 % Exercise Price $ 17.95 $ 3.59 # $ 22.4375 $ 4.4875 # Fair value of the warrant $ 0.0937 $ 0.0329 $ 0.0727 $ 0.0256 Warrant liabilities (US$’000) $ 49 $ 86 $ 5 $ 9 2021 Investor Warrants 2021 Placement Agent Warrants March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Stock price# $ 0.73 $ 1.00 $ 0.73 $ 1.00 Years to maturity 2.38 2.63 2.38 2.63 Risk-free interest rate 2.35 % 0.87 % 2.35 % 0.87 % Dividend yield - - - - Expected volatility 121 % 115 % 121 % 115 % Exercise Price# $ 3.59 $ 3.59 $ 4.4875 $ 4.4875 Fair value of the warrant $ 0.24 $ 0.37 $ 0.23 $ 0.36 Warrant liabilities (US$’000) $ 626 $ 964 $ 84 $ 132 2020 Investor Warrants 2020 Placement Agent Warrants March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Stock price $ 1.70 $ 0.46 # $ 1.70 $ 0.46 # Years to maturity 0.70 0.95 0.70 0.95 Risk-free interest rate 4.80 % 4.716 % 4.80 % 4.716 % Dividend yield - - - - Expected volatility 125 % 115.61 % 125 % 115.61 % Exercise Price $ 10.15 $ 2.03 # $ 10.15 $ 2.03 # Fair value of the warrant $ 0.0731 $ 0.0439 $ 0.0760 $ 0.0456 Warrant liabilities (US$’000) $ 25 $ 76 $ 5 $ 14 2020 Investor Warrants 2020 Placement Agent Warrants March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Stock price# $ 0.73 $ 1.00 $ 0.73 $ 1.00 Years to maturity 1.70 1.95 1.70 1.95 Risk-free interest rate 2.23 % 0.72 % 2.23 % 0.72 % Dividend yield - - - - Expected volatility 127 % 128 % 127 % 128 % Exercise Price# $ 2.03 $ 2.03 $ 2.03 $ 2.03 Fair value of the warrant $ 0.26 $ 0.46 $ 0.28 $ 0.49 Warrant liabilities (US$’000) $ 449 $ 795 $ 85 $ 148 |
Note 17 - Concentration of Ri_2
Note 17 - Concentration of Risk (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Customer A Customer B Customer C Customer D Customer E Three Months Ended March 31, 2023 Revenues, customer concentration risk * * * * * Three Months Ended March 31, 2022 Revenues, customer concentration risk 13% * * * * As of March 31, 2023 Accounts receivable, customer concentration risk 10% 40% 25% 14% 10% As of December 31, 2022 Accounts receivable, customer concentration risk 16% 33% 24% 16% * Supplier A Supplier B Supplier C Three Months Ended March 31, 2023 Cost of revenues, supplier concentration risk 78% 14% - Three Months Ended March 31, 2022 Cost of revenues, supplier concentration risk * 60% 22% |
Note 19 - Segment Reporting (Ta
Note 19 - Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Internet Ad and related Ecommerce Blockchain Corporate Inter- Total US$(‘000) US$(‘000) US$(‘000) US$(‘000) US$(‘000) US$(‘000) Revenues 6,291 - 25 - - 6,316 Cost of revenues 6,420 - 210 - - 6,630 Total operating expenses 349 4 - 645 (1) - 998 Depreciation and amortization expense included in cost of revenues and total operating expenses 91 - 210 21 - 322 Operating loss (478 ) (4 ) (185 ) (645 ) - (1,312 ) Change in fair value of warrant liabilities - - - 101 - 101 Net loss (482 ) (1 ) (186 ) (474 ) (1,143 ) Total assets-March 31, 2023 10,060 154 1,472 38,372 (32,227 ) 17,831 Total assets-December 31, 2022 10,385 156 1,682 39,136 (31,701 ) 19,658 Internet Ad and related Ecommerce Blockchain Corporate Inter- Total US$(‘000) US$(‘000) US$(‘000) US$(‘000) US$(‘000) US$(‘000) Revenues 7,652 - - - - 7,652 Cost of revenues 7,518 - - - - 7,518 Total operating expenses 288 329 368 700 (1) - 1,685 Depreciation and amortization expense included in cost of revenues and total operating expenses 89 75 368 22 - 554 Operating loss (154 ) (329 ) (368 ) (700 ) - (1,551 ) Change in fair value of warrant liabilities - - - 795 - 795 Net (loss)/income (167 ) (328 ) (368 ) 146 (717 ) |
Note 20 - Loss Per Share (Table
Note 20 - Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Net loss attributable to ZW Data Action Technologies Inc. (numerator for basic and diluted loss per share) $ (1,143 ) $ (717 ) Weighted average number of common shares outstanding -Basic and diluted 7,174,506 7,079,962 Loss per share -Basic and diluted $ (0.16 ) $ (0.10 ) |
Note 21 - Share-based Compens_2
Note 21 - Share-based Compensation Expenses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended March 31, 2023 2022 US$( 000) US$( 000) (Unaudited) (Unaudited) Sales and marketing expenses - - General and administrative expenses 35 56 Research and development expenses - - Total 35 56 |
Note 2 - Variable Interest En_3
Note 2 - Variable Interest Entities - Consolidated VIEs' Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Cash and Cash Equivalents, at Carrying Value | $ 1,592 | $ 4,391 | |
Accounts receivable, net | 1,567 | 1,745 | |
Prepayment and deposit to suppliers | 4,390 | 4,567 | |
Other current assets | 3,327 | 1,610 | |
Total current assets | 10,876 | 12,313 | |
Long-term investments | 1,604 | 1,596 | |
Operating Lease, Right-of-Use Asset | 1,680 | 1,761 | |
Property and equipment, net | 225 | 249 | |
Deferred tax assets, net | 413 | 406 | |
Total Assets | 17,831 | 19,658 | |
Accounts payable | [1] | 218 | 205 |
Advances from customers | [1] | 720 | 739 |
Accrued payroll and other accruals | [1] | 266 | 438 |
Taxes payable | [1] | 3,280 | 3,248 |
Operating lease liabilities | [1] | 310 | 347 |
Lease payment liabilities related to short-term leases | [1] | 103 | 101 |
Other current liabilities | [1] | 341 | 437 |
Total current liabilities | 5,322 | 5,700 | |
Total Liabilities | 6,949 | 7,361 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Cash and Cash Equivalents, at Carrying Value | 340 | 578 | |
Accounts receivable, net | 1,567 | 1,745 | |
Prepayment and deposit to suppliers | 1,931 | 2,020 | |
Other current assets | 3 | 2 | |
Total current assets | 3,841 | 4,345 | |
Long-term investments | 167 | 165 | |
Operating Lease, Right-of-Use Asset | 98 | 145 | |
Property and equipment, net | 104 | 113 | |
Deferred tax assets, net | 413 | 406 | |
Total Assets | 4,623 | 5,174 | |
Accounts payable | 218 | 205 | |
Advances from customers | 667 | 515 | |
Accrued payroll and other accruals | 39 | 63 | |
Taxes payable | 2,629 | 2,602 | |
Operating lease liabilities | 99 | 146 | |
Lease payment liabilities related to short-term leases | 103 | 101 | |
Other current liabilities | 204 | 320 | |
Total current liabilities | 3,959 | 3,952 | |
Total Liabilities | $ 3,959 | $ 3,952 | |
[1]Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 2). |
Note 2 - Variable Interest En_4
Note 2 - Variable Interest Entities - Consolidated VIEs' Financial Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | $ 6,316 | $ 7,652 |
Cost of revenues | (6,630) | (7,518) |
Total operating expenses | 998 | 1,685 |
Net loss before allocation to noncontrolling interests | (1,143) | (717) |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Revenues | 6,148 | 7,198 |
Cost of revenues | (6,327) | (7,518) |
Total operating expenses | (370) | (259) |
Net loss before allocation to noncontrolling interests | $ (550) | $ (585) |
Note 3 - Liquidity and Capita_2
Note 3 - Liquidity and Capital Resources (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Operating Income (Loss) | $ (1,312) | $ (1,551) | |
Net Cash Provided by (Used in) Operating Activities | (916) | $ (890) | |
Cash and Cash Equivalents, at Carrying Value | 1,592 | $ 4,391 | |
Working Capital | $ 5,550 |
Note 4 - Summary of Significa_3
Note 4 - Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||
Jan. 18, 2023 shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) | Jan. 17, 2023 shares | Jan. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | |
Retained Earnings (Accumulated Deficit) | $ (54,859) | $ (53,525) | |||||
Accounts Receivable, Allowance for Credit Loss | 4,070 | $ 2,245 | 3,760 | $ 2,236 | |||
Financing Receivable, Allowance for Credit Loss | $ 850 | 0 | $ 617 | 0 | |||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||
Common Stock, Shares Authorized (in shares) | shares | 20,000,000 | 20,000,000 | 100,000,000 | 20,000,000 | |||
Stock Issued During Period, Fractional Shares, Reverse Stock Splits (in shares) | shares | 0 | ||||||
Common Stock, Shares, Issued (in shares) | shares | 7,174,506 | 7,174,506 | 35,827,677 | 7,174,506 | |||
Research and Development Expense | $ 18 | $ 68 | |||||
Operating Lease, Right-of-Use Asset | 1,680 | $ 1,761 | |||||
Operating Lease, Liability | 1,810 | ||||||
Other Current Assets [Member] | |||||||
Operating Lease, Right-of-Use Asset | 1,680 | ||||||
Other Current Liabilities [Member] | |||||||
Operating Lease, Liability | $ 1,810 | ||||||
Reverse Stock Split [Member] | |||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 5 | ||||||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Retained Earnings (Accumulated Deficit) | $ (190) | ||||||
Accounts Receivable, Allowance for Credit Loss | 40 | 36 | 0 | ||||
Financing Receivable, Allowance for Credit Loss | $ 150 | $ 155 | $ 0 |
Note 4 - Summary of Significa_4
Note 4 - Summary of Significant Accounting Policies - Exchange Rates Used to Translate Amounts in RMB Into US$ (Details) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Balance sheet items, except for equity accounts | 6.8717 | 6.9646 | |
Items in the statements of operations and comprehensive loss | 6.8476 | 6.3504 |
Note 4 - Summary of Significa_5
Note 4 - Summary of Significant Accounting Policies - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Balance | $ 3,760 | $ 2,236 |
Accounts Receivable, Credit Loss Expense (Reversal) | 223 | 0 |
Written off during the period | 0 | 0 |
Exchange translation adjustments | 51 | 9 |
Balance as of end of the period | 4,070 | 2,245 |
Balance | 617 | 0 |
Provision for credit loss during the period | 78 | 0 |
Written off during the period | 0 | 0 |
Exchange translation adjustments | 0 | 0 |
Balance | 850 | 0 |
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Balance | 36 | 0 |
Balance | $ 155 | $ 0 |
Note 4 - Summary of Significa_6
Note 4 - Summary of Significant Accounting Policies - Summary of Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Warrant liabilities (Note 14) | $ 84 | $ 185 |
Fair Value, Recurring [Member] | ||
Warrant liabilities (Note 14) | 84 | 185 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Warrant liabilities (Note 14) | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Warrant liabilities (Note 14) | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Warrant liabilities (Note 14) | $ 84 | $ 185 |
Note 4 - Summary of Significa_7
Note 4 - Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | $ 6,316 | $ 7,652 |
Search Engine Marketing and Data Service [Member] | ||
Revenues | 6,161 | 6,594 |
Online Advertising Placement [Member] | ||
Revenues | 130 | 1,058 |
Blockchain-based SaaS services [Member] | ||
Revenues | 25 | 0 |
Transferred over Time [Member] | ||
Revenues | 6,316 | 7,652 |
Transferred at Point in Time [Member] | ||
Revenues | $ 0 | $ 0 |
Note 4 - Summary of Significa_8
Note 4 - Summary of Significant Accounting Policies - Contract liabilities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Balance | $ 739 |
Exchange translation adjustment | 8 |
Revenue recognized from beginning contract liability balance | (550) |
Advances received from customers related to unsatisfied performance obligations | 523 |
Balance | $ 720 |
Note 4 - Summary of Significa_9
Note 4 - Summary of Significant Accounting Policies - Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Nine months ending December 31, 2023 | $ 329 | ||
-2024 | 317 | ||
-2025 | 333 | ||
-2026 | 349 | ||
-2027 | 367 | ||
-2028 | 385 | ||
-thereafter | 65 | ||
Total undiscounted lease payments | 2,145 | ||
Less: imputed interest | (335) | ||
Total operating lease liabilities as of March 31, 2023 | 1,810 | ||
Operating lease liabilities-current | [1] | 310 | $ 347 |
Operating lease liabilities-Non current | $ 1,500 | $ 1,535 | |
[1]Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 2). |
Note 4 - Summary of Signific_10
Note 4 - Summary of Significant Accounting Policies - Operating Lease Expenses and Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Long-term operating lease contracts | $ 133 | $ 90 |
Short-term operating lease contracts | 6 | 15 |
Total | 139 | 105 |
Operating cash flows used for operating leases (US$’000) | 122 | 86 |
Right-of-use assets obtained in exchange for new lease liabilities (US$’000) | $ 0 | $ 0 |
Weighted-average remaining lease term (Year) | 5 years 7 months 13 days | 6 years 10 months 24 days |
Weighted-average discount rate | 6% | 6% |
Note 5 - Accounts Receivable,_3
Note 5 - Accounts Receivable, Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounts Receivable, Credit Loss Expense (Reversal) | $ 223 | $ 0 |
Note 5 - Accounts Receivable,_4
Note 5 - Accounts Receivable, Net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable | $ 5,637 | $ 5,505 |
Allowance for credit loss | (4,070) | (3,760) |
Accounts receivable, net | $ 1,567 | $ 1,745 |
Note 6 - Prepayment and Depos_3
Note 6 - Prepayment and Deposit to Suppliers - Prepayments and Deposit to Suppliers (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Prepayment and deposit to suppliers | $ 4,390 | $ 4,567 |
Deposits to TV Ad and Internet Ad Resources Providers [Member] | ||
Prepayment and deposit to suppliers | 866 | 1,077 |
Prepayment to TV Ad and Internet Ad Resources Providers [Member] | ||
Prepayment and deposit to suppliers | 3,045 | 3,036 |
Other Deposits and Prepayments [Member] | ||
Prepayment and deposit to suppliers | $ 479 | $ 454 |
Note 7 - Other Current Assets_3
Note 7 - Other Current Assets, Net (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 4 Months Ended | ||||||||||||
Apr. 25, 2022 | Mar. 31, 2022 | May 31, 2023 | Feb. 28, 2023 | Oct. 31, 2022 | Mar. 31, 2021 | Apr. 30, 2022 | Mar. 31, 2023 | Jan. 11, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | May 01, 2022 | Jan. 05, 2022 | Dec. 31, 2021 | |
Financing Receivable, before Allowance for Credit Loss, Current | $ 4,097 | $ 2,197 | ||||||||||||
Financing Receivable, Allowance for Credit Loss, Current | 850 | 617 | ||||||||||||
Financing Receivable, Allowance for Credit Loss | $ 0 | 850 | $ 617 | $ 0 | ||||||||||
Loan to Unrelated Party [Member] | ||||||||||||||
Financing Receivable, before Allowance for Credit Loss, Current | $ 2,500 | |||||||||||||
Loans Receivable, Interest Rate, Stated Percentage | 7.50% | |||||||||||||
Proceeds from Collection of Notes Receivable | $ 1,020 | |||||||||||||
Proceeds from Interest Received | $ 60 | |||||||||||||
Revised Loan to Original Unrelated Party [Member] | ||||||||||||||
Financing Receivable, before Allowance for Credit Loss, Current | $ 1,480 | |||||||||||||
Loans Receivable, Interest Rate, Stated Percentage | 5% | |||||||||||||
Proceeds from Interest Received | $ 50 | $ 50 | ||||||||||||
Revised Loan to Original Unrelated Party [Member] | Subsequent Event [Member] | ||||||||||||||
Proceeds from Interest Received | $ 20 | |||||||||||||
Second Loan to Unrelated Party [Member] | ||||||||||||||
Financing Receivable, before Allowance for Credit Loss, Current | $ 2,000 | |||||||||||||
Loans Receivable, Interest Rate, Stated Percentage | 12% | |||||||||||||
Working Capital Loan to Unrelated Parties [Member] | ||||||||||||||
Financing Receivable, Allowance for Credit Loss, Current | 80 | |||||||||||||
Digital Sun [Member] | ||||||||||||||
Financing Receivable, before Allowance for Credit Loss, Current | $ 1,650 | |||||||||||||
Proceeds from Collection of Notes Receivable | 1,030 | |||||||||||||
Notes And Loans Receivable, Term (Year) | 1 year | |||||||||||||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ 620 | |||||||||||||
Financing Receivable, Allowance for Credit Loss | $ 620 | |||||||||||||
Digital Sun [Member] | Other Current Assets [Member] | ||||||||||||||
Financing Receivable, after Allowance for Credit Loss, Current, Total | $ 620 |
Note 7 - Other Current Assets_4
Note 7 - Other Current Assets, Net - Summary of Other Current Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Short-term loans to unrelated parties | $ 4,097 | $ 2,197 |
Short-term loans interest receivables | 71 | 22 |
Staff advances for business operations | 9 | 8 |
Total other current assets | 4,177 | 2,227 |
Allowance for credit loss | (850) | (617) |
Other current assets, net | $ 3,327 | $ 1,610 |
Note 8 - Long-term Investment_2
Note 8 - Long-term Investments (Details Textual) | Mar. 31, 2023 | Sep. 30, 2022 | Aug. 31, 2022 |
New Business Holdings Limited [Member] | |||
Equity Securities without Readily Determinable Fair Value, Percent | 15.38% | ||
Guang Dong WeFriend Co., Ltd [Member] | |||
Equity Securities without Readily Determinable Fair Value, Percent | 10% | ||
Guangdong Yong Fu Xiang Health Management Co., Ltd (Yong Fu Xiang) [Member] | |||
Equity Securities without Readily Determinable Fair Value, Percent | 9.90% | 9.90% | |
Guangzhou Yuan Qi Man Man Technology Co., Ltd. (Yuan Qi Man Man) [Member] | |||
Equity Securities without Readily Determinable Fair Value, Percent | 9% | 9% | |
Business Opportunity Chain [Member] | |||
Equity Securities without Readily Determinable Fair Value, Percent | 19% |
Note 8 - Long-term Investment_3
Note 8 - Long-term Investments - Summary of Long-term Investments (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Balance | $ 1,596 |
Exchange translation adjustment | 8 |
Balance | $ 1,604 |
Note 9 - Property and Equipme_3
Note 9 - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Depreciation | $ 20 | $ 30 |
Note 9 - Property and Equipme_4
Note 9 - Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property and equipment, gross | $ 2,444 | $ 2,480 |
Less: accumulated depreciation | (2,219) | (2,231) |
Property and equipment, net | 225 | 249 |
Vehicles [Member] | ||
Property and equipment, gross | 797 | 855 |
Office Equipment [Member] | ||
Property and equipment, gross | 876 | 865 |
Electronic Devices [Member] | ||
Property and equipment, gross | 584 | 575 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | $ 187 | $ 185 |
Note 10 - Intangible Assets, _3
Note 10 - Intangible Assets, Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Amortization of Intangible Assets | $ 300 | $ 530 |
Finite-Lived Intangible Asset, Useful Life (Year) | 3 years 4 months 2 days | |
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | $ 900 | |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 1,190 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 350 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 180 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | $ 120 |
Note 10 - Intangible Assets, _4
Note 10 - Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-lived intangible assets | $ 9,712 | $ 9,690 |
Finite-lived intangible assets, Accumulated amortization | (4,216) | (3,902) |
Finite-lived intangible assets, Impairment | (2,532) | (2,524) |
Intangible assets, net | 2,964 | 3,264 |
Cloud-Computing Based Software Platforms [Member] | ||
Finite-lived intangible assets | 1,351 | 1,333 |
Finite-lived intangible assets, Accumulated amortization | (937) | (924) |
Finite-lived intangible assets, Impairment | (414) | (409) |
Intangible assets, net | 0 | 0 |
Licensing Agreements [Member] | ||
Finite-lived intangible assets | 1,200 | 1,201 |
Finite-lived intangible assets, Accumulated amortization | (405) | (374) |
Intangible assets, net | 795 | 827 |
Internet Ad Tracking System [Member] | ||
Finite-lived intangible assets | 1,160 | 1,160 |
Finite-lived intangible assets, Accumulated amortization | (463) | (405) |
Intangible assets, net | 697 | 755 |
Livestreaming Technology [Member] | ||
Finite-lived intangible assets | 1,500 | 1,500 |
Finite-lived intangible assets, Accumulated amortization | (625) | (625) |
Finite-lived intangible assets, Impairment | (875) | (875) |
Intangible assets, net | 0 | 0 |
Blockchain Integrated Framework Platform [Member] | ||
Finite-lived intangible assets | 4,038 | 4,038 |
Finite-lived intangible assets, Accumulated amortization | (1,556) | (1,346) |
Finite-lived intangible assets, Impairment | (1,010) | (1,010) |
Intangible assets, net | 1,472 | 1,682 |
Bo!News Application [Member] | ||
Finite-lived intangible assets | 349 | 345 |
Finite-lived intangible assets, Accumulated amortization | (116) | (115) |
Finite-lived intangible assets, Impairment | (233) | (230) |
Intangible assets, net | 0 | 0 |
Other Computer Software [Member] | ||
Finite-lived intangible assets | 114 | 113 |
Finite-lived intangible assets, Accumulated amortization | (114) | (113) |
Intangible assets, net | $ 0 | $ 0 |
Note 10 - Intangible Assets, _5
Note 10 - Intangible Assets, Net - Intangible Assets, Net (Details) (Parentheticals) | Mar. 31, 2023 | Dec. 31, 2022 |
Useful life (Year) | 3 years 4 months 2 days | |
Cloud-Computing Based Software Platforms [Member] | ||
Useful life (Year) | 10 years | 10 years |
Licensing Agreements [Member] | ||
Useful life (Year) | 10 years | 10 years |
Internet Ad Tracking System [Member] | ||
Useful life (Year) | 5 years | 5 years |
Livestreaming Technology [Member] | ||
Useful life (Year) | 5 years | 5 years |
Blockchain Integrated Framework Platform [Member] | ||
Useful life (Year) | 3 years | 3 years |
Bo!News Application [Member] | ||
Useful life (Year) | 3 years | 3 years |
Other Computer Software [Member] | ||
Useful life (Year) | 3 years | 3 years |
Note 11 - Accrued Payroll and_3
Note 11 - Accrued Payroll and Other Accruals - Accrued Payroll and Other Accruals (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Accrued payroll and other accruals | [1] | $ 266 | $ 438 |
Accrued Payroll and Staff Welfare [Member] | |||
Accrued payroll and other accruals | 83 | 101 | |
Accrued Operating Expenses [Member] | |||
Accrued payroll and other accruals | $ 183 | $ 337 | |
[1]Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 2). |
Note 12 - Taxation (Details Tex
Note 12 - Taxation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Operating Loss Carryforwards | $ 32,000 | $ 31,800 | |
Operating Loss Carryforwards, Taxable Income Deduction Limitations | 80% | ||
Deferred Tax Assets, Valuation Allowance | $ 13,080 | 12,691 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 300 | $ 320 | |
PRC Subsidiary And VIE's [Member] | |||
Operating Loss Carryforwards | $ 16,000 | $ 15,400 |
Note 12 - Taxation - Taxes Paya
Note 12 - Taxation - Taxes Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Turnover tax and surcharge payable | $ 1,297 | $ 1,288 | |
Enterprise income tax payable | 1,983 | 1,960 | |
Total taxes payable | [1] | $ 3,280 | $ 3,248 |
[1]Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 2). |
Note 12 - Taxation - Income Tax
Note 12 - Taxation - Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Current | $ 0 | $ 0 |
Deferred | 1 | 2 |
Income tax benefit | $ 1 | $ 2 |
Note 12 - Taxation - Deferred T
Note 12 - Taxation - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Tax effect of net operating losses carried forward | $ 11,812 | $ 11,537 |
Operating lease cost | 33 | 30 |
Impairment on long-term investments | 146 | 144 |
Impairment on intangible assets | 369 | 368 |
Bad debts provision | 1,133 | 1,018 |
Valuation allowance | (13,080) | (12,691) |
Deferred tax assets, net | $ 413 | $ 406 |
Note 14 - Warrant Liabilities_2
Note 14 - Warrant Liabilities (Details Textual) | Jan. 18, 2023 |
Reverse Stock Split [Member] | |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 5 |
Note 14 - Warrant Liabilities-
Note 14 - Warrant Liabilities- Fair Value of Warrants (Details) $ in Thousands | Mar. 31, 2023 USD ($) yr | Dec. 31, 2022 USD ($) yr | Mar. 31, 2022 USD ($) yr | Dec. 31, 2021 USD ($) yr | |||
Warrant liabilities as of the closing date | $ 84 | $ 185 | $ 1,244 | $ 2,039 | |||
Investor Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Warrant liabilities as of the closing date | 49 | 86 | 626 | 964 | |||
Investor Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Warrant liabilities as of the closing date | 25 | 76 | 449 | 795 | |||
Placement Agent Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Warrant liabilities as of the closing date | 5 | 9 | 84 | 132 | |||
Placement Agent Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Warrant liabilities as of the closing date | $ 5 | $ 14 | $ 85 | $ 148 | |||
Measurement Input, Share Price [Member] | Investor Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 1.70 | 0.46 | 0.73 | [1] | 1 | [1] | |
Measurement Input, Share Price [Member] | Investor Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 1.70 | 0.46 | 0.73 | [1] | 1 | [1] | |
Measurement Input, Share Price [Member] | Placement Agent Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 1.70 | 0.46 | 0.73 | [1] | 1 | [1] | |
Measurement Input, Share Price [Member] | Placement Agent Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 1.70 | 0.46 | 0.73 | [1] | 1 | [1] | |
Measurement Input, Expected Term [Member] | Investor Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | yr | 1.38 | 1.63 | 2.38 | 2.63 | |||
Measurement Input, Expected Term [Member] | Investor Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | yr | 0.70 | 0.95 | 1.70 | 1.95 | |||
Measurement Input, Expected Term [Member] | Placement Agent Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | yr | 1.38 | 1.63 | 2.38 | 2.63 | |||
Measurement Input, Expected Term [Member] | Placement Agent Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | yr | 0.70 | 0.95 | 1.70 | 1.95 | |||
Measurement Input, Risk Free Interest Rate [Member] | Investor Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 0.0444 | 0.04625 | 0.0235 | 0.0087 | |||
Measurement Input, Risk Free Interest Rate [Member] | Investor Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 0.0480 | 0.04716 | 0.0223 | 0.0072 | |||
Measurement Input, Risk Free Interest Rate [Member] | Placement Agent Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 0.0444 | 0.04625 | 0.0235 | 0.0087 | |||
Measurement Input, Risk Free Interest Rate [Member] | Placement Agent Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 0.0480 | 0.04716 | 0.0223 | 0.0072 | |||
Measurement Input, Expected Dividend Rate [Member] | Investor Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 0 | 0 | 0 | 0 | |||
Measurement Input, Expected Dividend Rate [Member] | Investor Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 0 | 0 | 0 | 0 | |||
Measurement Input, Expected Dividend Rate [Member] | Placement Agent Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 0 | 0 | 0 | 0 | |||
Measurement Input, Expected Dividend Rate [Member] | Placement Agent Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 0 | 0 | 0 | 0 | |||
Measurement Input, Price Volatility [Member] | Investor Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 1.13 | 0.9974 | 1.21 | 1.15 | |||
Measurement Input, Price Volatility [Member] | Investor Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 1.25 | 1.1561 | 1.27 | 1.28 | |||
Measurement Input, Price Volatility [Member] | Placement Agent Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 1.13 | 0.9974 | 1.21 | 1.15 | |||
Measurement Input, Price Volatility [Member] | Placement Agent Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 1.25 | 1.1561 | 1.27 | 1.28 | |||
Measurement Input, Exercise Price [Member] | Investor Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 17.95 | 3.59 | [1] | 3.59 | 3.59 | ||
Measurement Input, Exercise Price [Member] | Investor Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 10.15 | 2.03 | [1] | 2.03 | 2.03 | ||
Measurement Input, Exercise Price [Member] | Placement Agent Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 22.4375 | 4.4875 | [1] | 4.4875 | 4.4875 | ||
Measurement Input, Exercise Price [Member] | Placement Agent Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 10.15 | 2.03 | [1] | 2.03 | 2.03 | ||
Measurement Input, Quoted Price [Member] | Investor Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 0.0937 | 0.0329 | 0.24 | 0.37 | |||
Measurement Input, Quoted Price [Member] | Investor Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 0.0731 | 0.0439 | 0.26 | 0.46 | |||
Measurement Input, Quoted Price [Member] | Placement Agent Warrants Issued in Connection with 2021 Financing [Member] | |||||||
Fair value of the warrants | 0.0727 | 0.0256 | 0.23 | 0.36 | |||
Measurement Input, Quoted Price [Member] | Placement Agent Warrants Issued in Connection with 2020 Financing [Member] | |||||||
Fair value of the warrants | 0.0760 | 0.0456 | 0.28 | 0.49 | |||
[1]To reflect the actual inputs used for the determination of fair value of the Warrants, the stock prices and exercise prices presented were not retrospectively restated for effect of the 1-for-5 reverse stock split effective on January 18, 2023, see Note 4(g). |
Note 14 - Warrant Liabilities -
Note 14 - Warrant Liabilities - Warrant Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Warrant liabilities as of the closing date | $ 84 | $ 1,244 | $ 185 | $ 2,039 |
Change in fair value of warrants | (101) | (795) | ||
Investor Warrants Issued in Connection with 2021 Financing [Member] | ||||
Warrant liabilities as of the closing date | 49 | 626 | 86 | 964 |
Change in fair value of warrants | (37) | (338) | ||
Placement Agent Warrants Issued in Connection with 2021 Financing [Member] | ||||
Warrant liabilities as of the closing date | 5 | 84 | 9 | 132 |
Change in fair value of warrants | (4) | (48) | ||
Investor Warrants Issued in Connection with 2020 Financing [Member] | ||||
Warrant liabilities as of the closing date | 25 | 449 | 76 | 795 |
Change in fair value of warrants | (51) | (346) | ||
Placement Agent Warrants Issued in Connection with 2020 Financing [Member] | ||||
Warrant liabilities as of the closing date | 5 | 85 | $ 14 | $ 148 |
Change in fair value of warrants | $ (9) | $ (63) |
Note 14 - Warrant Liabilities_3
Note 14 - Warrant Liabilities - Warrant Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Balance (in shares) | 1,000,343 | |
Balance, weighted average remaining contractual life (Year) | 1 year 1 month 9 days | 1 year 4 months 9 days |
Weighted average exercise price (in dollars per share) | $ 15.11 | |
Exercisable (in shares) | 1,001,343 | |
Exercisable, weighted average remaining contractual life (Year) | 1 year 1 month 9 days | 1 year 4 months 9 days |
Exercisable, weighted average exercise price (in dollars per share) | $ 15.11 | |
Granted/Vested (in shares) | 0 | |
Exercised (in shares) | 0 | |
Balance (in shares) | 1,000,343 | 1,000,343 |
Weighted average exercise price (in dollars per share) | $ 15.11 | $ 15.11 |
Exercisable (in shares) | 1,000,343 | 1,001,343 |
Exercisable, weighted average exercise price (in dollars per share) | $ 15.11 | $ 15.11 |
Note 15 - Restricted Net Asse_2
Note 15 - Restricted Net Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | $ 13,680 | $ 13,310 |
Withholding Tax Rate Pursuant To EIT Law | 10% | |
WFOE [Member] | ||
Minimum Percentage Of Annual After-tax Profit For General Reserve | 10% | |
Minimum Required Reserve As Percent Of Registered Capital | 50% | |
Domestic Enterprise [Member] | ||
Minimum Percentage Of Annual After-tax Profit For General Reserve | 10% |
Note 16 - Employee Defined Co_2
Note 16 - Employee Defined Contribution Plan (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Contribution Plan, Cost | $ 40 | $ 70 |
Note 17 - Concentration of Ri_3
Note 17 - Concentration of Risk (Details Textual) - Geographic Concentration Risk [Member] - Cash and Cash Equivalents [Member] | 3 Months Ended |
Mar. 31, 2023 | |
UNITED STATES | |
Concentration Risk, Percentage | 59% |
CHINA | |
Concentration Risk, Percentage | 41% |
Note 17 - Concentration of Ri_4
Note 17 - Concentration of Risk - Company's Concentration of Customers and Suppliers (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||
Concentration risk | [1] | 13% | ||
Cost Of Sales Total [Member] | Supplier Concentration Risk [Member] | Supplier A [Member] | ||||
Concentration risk | 78% | |||
Cost Of Sales Total [Member] | Supplier Concentration Risk [Member] | Supplier B [Member] | ||||
Concentration risk | 14% | 60% | ||
Cost Of Sales Total [Member] | Supplier Concentration Risk [Member] | Supplier C [Member] | ||||
Concentration risk | 22% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||
Concentration risk | 10% | 16% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||
Concentration risk | 40% | 33% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member] | ||||
Concentration risk | 25% | 24% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer D [Member] | ||||
Concentration risk | 14% | 16% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer E [Member] | ||||
Concentration risk | 10% | |||
[1]Less than 10%. |
Note 18 - Commitments and Con_2
Note 18 - Commitments and Contingencies (Details Textual) ¥ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Aug. 31, 2022 USD ($) | Aug. 31, 2022 CNY (¥) |
Equity Securities without Readily Determinable Fair Value, Amount | $ 1,604,000 | $ 1,596,000 | ||||
Guangdong Yong Fu Xiang Health Management Co., Ltd (Yong Fu Xiang) [Member] | ||||||
Equity Securities without Readily Determinable Fair Value, Percent | 9.90% | 9.90% | 9.90% | |||
Equity Securities without Readily Determinable Fair Value, Amount | $ 0.98 | ¥ 6,730 | ||||
Guangzhou Yuan Qi Man Man Technology Co., Ltd. (Yuan Qi Man Man) [Member] | ||||||
Equity Securities without Readily Determinable Fair Value, Percent | 9% | 9% | 9% | |||
Equity Securities without Readily Determinable Fair Value, Amount | $ 10,000 | ¥ 90 |
Note 19 - Segment Reporting (De
Note 19 - Segment Reporting (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement, Expense | $ 35 | $ 56 |
Note 19 - Segment Reporting - S
Note 19 - Segment Reporting - Summary of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |||
Revenues | $ 6,316 | $ 7,652 | |||
Cost of revenues | 6,630 | 7,518 | |||
Total operating expenses | 998 | 1,685 | |||
Depreciation and amortization expense included in cost of revenues and total operating expenses | 322 | 554 | |||
Operating loss | (1,312) | (1,551) | |||
Change in fair value of warrant liabilities | 101 | 795 | |||
Net loss | (1,143) | (717) | |||
Total assets | 17,831 | $ 19,658 | |||
Corporate, Non-Segment [Member] | |||||
Revenues | 0 | ||||
Cost of revenues | 0 | ||||
Total operating expenses | 645 | [1] | 700 | [2] | |
Depreciation and amortization expense included in cost of revenues and total operating expenses | 21 | 22 | |||
Operating loss | (645) | (700) | |||
Change in fair value of warrant liabilities | 101 | 795 | |||
Net loss | (474) | 146 | |||
Total assets | 38,372 | 39,136 | |||
Intersegment Eliminations [Member] | |||||
Operating loss | 0 | 0 | |||
Net loss | |||||
Total assets | (32,227) | (31,701) | |||
Internet Ad [Member] | Operating Segments [Member] | |||||
Revenues | 6,291 | 7,652 | |||
Cost of revenues | 6,420 | 7,518 | |||
Total operating expenses | 349 | 288 | |||
Depreciation and amortization expense included in cost of revenues and total operating expenses | 91 | 89 | |||
Operating loss | (478) | (154) | |||
Net loss | (482) | (167) | |||
Total assets | 10,060 | 10,385 | |||
Ecommerce O2O Ad and Marketing Services [Member] | Operating Segments [Member] | |||||
Revenues | 0 | 0 | |||
Cost of revenues | 0 | ||||
Total operating expenses | 4 | 329 | |||
Depreciation and amortization expense included in cost of revenues and total operating expenses | 75 | ||||
Operating loss | (4) | (329) | |||
Net loss | (1) | (328) | |||
Total assets | 154 | 156 | |||
Blockchain Technology [Member] | Operating Segments [Member] | |||||
Revenues | 25 | ||||
Cost of revenues | 210 | ||||
Total operating expenses | 368 | ||||
Depreciation and amortization expense included in cost of revenues and total operating expenses | 210 | 368 | |||
Operating loss | (185) | (368) | |||
Net loss | (186) | $ (368) | |||
Total assets | 1,472 | $ 1,682 | |||
Corporate Segment [Member] | |||||
Revenues | 6,316 | ||||
Cost of revenues | 6,630 | ||||
Total operating expenses | 998 | ||||
Change in fair value of warrant liabilities | $ 101 | ||||
[1]Including approximately US$0.04 million share-based compensation expenses.[2]Including approximately US$0.06 million share-based compensation expenses. |
Note 20 - Loss Per Share - Basi
Note 20 - Loss Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Net loss attributable to ZW Data Action Technologies Inc. (numerator for basic and diluted loss per share) | $ (1,143) | $ (717) | |
Weighted average number of common shares outstanding -Basic and diluted (in shares) | [1] | 7,174,506 | 7,079,962 |
Loss per share -Basic and diluted (in dollars per share) | [1] | $ (0.16) | $ (0.10) |
[1]Retrospectively restated for effect of the 1-for-5 reverse stock split effective on January 18, 2023, see Note 4(g). |
Note 21 - Share-based Compens_3
Note 21 - Share-based Compensation Expenses (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement, Expense | $ 35 | $ 56 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 20 | |||
Management Consulting and Advisory Service Providers [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 80 | |||
Shares Issued, Price Per Share (in dollars per share) | $ 1.75 | |||
Issuance of Stock and Warrants for Services or Claims | $ 140 | |||
Share-Based Payment Arrangement, Expense | $ 40 | |||
Executive Officer [Member] | Restricted Stock [Member] | The 2020 Omnibus Securities and Incentive Plan, Second Issuance [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 95 | |||
Share-Based Payment Arrangement, Expense | $ 20 |
Note 21 - Share-based Compens_4
Note 21 - Share-based Compensation Expenses - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation expenses | $ 35 | $ 56 |
Selling and Marketing Expense [Member] | ||
Share-based Compensation expenses | 0 | 0 |
General and Administrative Expense [Member] | ||
Share-based Compensation expenses | 35 | 56 |
Research and Development Expense [Member] | ||
Share-based Compensation expenses | $ 0 | $ 0 |
Note 22 - Subsequent Events (De
Note 22 - Subsequent Events (Details Textual) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement, Expense | $ 35 | $ 56 | |
The 2020 Omnibus Securities and Incentive Plan, Second Issuance [Member] | Restricted Stock [Member] | Director [Member] | Subsequent Event [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 30 | ||
Share-Based Payment Arrangement, Expense | $ 50 |